Oil pulls back on deal hopes
Brent crude, the global benchmark, fell more than 1% to about $89 a barrel on Friday after President Trump canceled plans for a third straight day of strikes on Iran. West Texas Intermediate settled around $87, also down 1%. The decline follows weeks of elevated prices driven by Iran's disruption of shipping through the Strait of Hormuz, a waterway that normally carries one-fifth of the world's oil supply.
Wall Street and Asia rally
Stock markets surged on two continents. The S&P 500 posted strong gains Thursday on Wall Street, and Asian markets followed suit Friday. Japan's Nikkei and Hong Kong's Hang Seng both closed higher as investor optimism grew that an end to the conflict would stabilize energy markets and reduce geopolitical uncertainty. Trump stated that a sweeping peace deal with Iran could be signed as early as Sunday.
Uncertainty remains
Iran's state broadcaster, quoting a foreign ministry spokesman, said "nothing has been finalized," injecting caution into the rally. Analysts warn that the Strait of Hormuz disruption has already reset global supply chains and that even a signed deal would take weeks to restore normal shipping patterns. However, the shift in tone from the White House marks the most concrete signal of a potential resolution since hostilities escalated earlier this year.